A report into the demise of the In2Food Australia Group last year has also raised question about whether the company was trading while insolvent before entering voluntary administration. At the time it collapsed the business had also racked up debts of more than $8m with the tax office and had $57m of trading losses over three and a half years. But former chief executive Bill Kollatos said he “vehemently denies” any wrongdoing and has written to administrators about “blatantly incorrect” information in their December report. Mr Kollatos told staff last year when the business entered voluntary administration that “snap lockdowns” had contributed to its demise as well as difficulty in the ready-to-eat meals industry.The business was later restructured and sold by receivers to Produce Republic, saving about 400 jobs. But one victim caught up in the collapse said small investors were still angry about the more than $8m of trade debts reported by administrators.In the December report, obtained by the Herald Sun, administrators say unsecured creditors were unlikely to get money back.“It is unlikely that there will be a return to ordinary unsecured creditors unless there are material insolvent transaction recoveries by a liquidator,” it says.“Based on our preliminary investigations we believe the Companies may have been insolvent from at least January 2021 … however we have identified potential statutory defences until at least early June 2021. “The Directors have advised that any insolvent trading claim against them would be defended.”It also raised questions about potential preferential payments to creditors, including $141,828 “to a related party on 9 August 2021 just prior to our appointment as Administrators”.Mr Kollatos said the group had financial backing up until the decision to enter voluntary administration and “vehemently” denied any wrongdoing. “There’s been no insolvent trading,” he said. The Herald Sun revealed in September that hundreds of small and medium businesses were among those owed millions by the failed company. Some Victorian growers were owed tens of thousands of dollars. Last year receivers said ready-to-eat meals were removed from the company’s product mix due to financial difficulties, and the business was looking to focus on its “core” of providing fresh food.
Powered by WPeMatico
